The insurance industry in India consists of 51 insurance companies of which 24 are in life insurance business and 27 are non-life insurance companies. In addition there is one national re-insurer, namely, General Insurance Corporation of India. Other stakeholders in Indian Insurance market include Agents (Individual and Corporate), Brokers, Surveyors and Third Party Administrators servicing Health Insurance claims.

Out of 27 non-life insurance companies, 4 are registered to underwrite policies exclusively in Health, Personal Accident and Travel insurance segments. They are Star Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd, Max Bupa Health Insurance Company Ltd and Religare Health Insurance Company Ltd. The non-life insurance sector also has two more specialised insurers,namely, Export Credit Guarantee Corporation of India for Credit Insurance and Agriculture Insurance Company Ltd for Crop Insurance

Here are some performance highlights of the Indian insurance industry.

Life Insurance Business Performance:

2010-11

2009-10

First Year Premium (Rs in Crores)

1,26,381

1,09,894

Policies (in Lakhs)

482

532

Number of Death Claims settled (Individual & Group Policies) (in Lakhs)

What is the difference between an agent and a broker? Can I get a discount on my premium if I go through an intermediary? Become a smart buyer, read about all this and more in the handbook about Intermediaries. Click here to download the hand book.

Buy With Care: Some Do`s and Don`ts:

You buy insurance for security. So be extra careful when you buy it. It is worth taking care of a few crucial aspects during this process.

Mis-selling by insurers and their intermediaries is something you have to be cautios about. IRDA keeps a tab on unethical practices by entities selling insurance based on unfounded promises.

Your insurance company and intermediary have to act according to the Code of Conduct prescribed by IRDA, the industry councils and the relevant recognised professional association.

In case of complaints about misselling IRDA examines the matter and issues an appropriate notice of caution on its website for public information.

Here are some Dos and Don’ts for buying insurance carefully:

Do`s

Buy only from a registered insurer or through his authorised intermediary

See the list of insurers on IRDA`s website. Ask them if your intermediary is genuine

Ask the intermediary for all information to make a decision

Evaluate if he is advising you dispassionately

Fill the proposal form yourself and give complete and factual information; False or misleading information could lead to disputes at the time of a claim

If you are not filling it up yourself, ensure that the contents are fully explained to you

Remember you have to sign a certificate as part of the proposal form taking responsibility for its contents

Make sure you understand clearly:

Whether your policy has a single premium or regular premium

What your policy term and premium paying term are. They can be different

What your surrender value is. It can be less than the premiums you have paid

What is covered and what is not covered

Understand the returns and bonuses, what is guaranteed and what is not

In the case of Unit-Linked insurance policies (ULIPs):

Make sure you understand the implications of bearing the investment risk yourself

Evaluate the performance of the funds before you invest

Understand the various charges levied under the policy

When you receive the policy bond:

Make sure it matches the terms proposed/ agreed by you

If they don’t, you can cancel it during the 15 day "free-look" period from the date you receive the policy bond

Premium will be refunded to you with some deductions

Don`ts

Do not sign a blank proposal form or leave any portion unanswered

Do not conceal relevant information or make any misstatements as it may lead to disputes at the time of a claim

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